Got my 700r4 going back together and ran into something I'm not too sure abt. Manual pics are not helping. The piece in question is called the "spring, transmission low and reverse clutch support retainer".
Assuming I have it in right, it looks like the end that engages the clutch support is right on the edge of slipping out of the notch.
See pics..

Do I have this thing installed correctly?

 

correct. - its comonly refered to as the "anti-clunk spring".

 

Is it supposed to look like it's abt to slip out of the cutout in the clutch support? It's appearance kinda bugs me.

 

It is correct. If you are using the Beast sunshell, then in picture two I would grind off at an angle about 1/8" for clearance. I am going to put this in the instructions in my build kits in the future.

 

I had one make a funny noise that went away, I realized what it was on the next build....

 

So if I understand this correctly, I need to grind off 1/8" from the curved leg so the grinded surface will be parallel with the clutch support? I've already installed the (beast) sunshell but didn't notice any interference. However, I'm not taking any chances since this will be difficult to get at later.

Thx guys!!

 

If you did not have any interference, you are ok here.